CORPUS CHRISTI, Tx — The Corpus Christi Housing Authority board will consider rescinding or modifying the controversial tax exemption program that has sparked citywide opposition and could cost local taxing entities millions in lost revenue.
An item on the board's May 28 agenda calls for "reconsideration and discussion for possible action, including rescission or modification" of resolutions that granted tax-exempt status to 20 apartment complexes, including high-end properties like The Villas on Ocean Drive, The Icon on Saratoga, and Southlake Ranch on Rodd Field.
The meeting marks the first time the new board will address a "workforce housing" program that has drawn fierce criticism from the Corpus Christi City Council, Del Mar College, Nueces County, and community leaders.
Mayor Paulette Guajardo appointed three new board members just one day after the city council unanimously voted to oppose the housing authority's tax exemption practices.
The three new appointees—former Mayor Joe McComb, former City Council Member Greg Smith, and West Oso ISD counselor Judith Gonzalez-Rodriguez—will join the board as it grapples with a program that could remove over $800 million in property value from tax rolls if all planned acquisitions proceed.
City Manager Peter Zanoni has warned that Corpus Christi alone could lose up to $7 million in revenue, while Del Mar College estimates a $1.1 million impact from properties already purchased by the housing authority.
The controversial program involves the housing authority acquiring apartment complex land at no cost, immediately leasing it back to original owners, and claiming 100% tax exemptions. While CCHA CEO Gary Allsup has defended this as a legal "workforce housing initiative" for teachers, firefighters, and police officers, City Attorney Miles Risley has called it "definitely improper" and potentially illegal.
To qualify for the program, complexes must set aside 50% of units for people earning 80% or less of the area's median income, with 10% designated for those at 60% of the area's median income.
The city council's unanimous resolution authorized active opposition to what they termed "improper and/or illegal use of property tax exemptions" by the CCHA. Del Mar College regents and Nueces County Commissioners have similarly authorized their president to take "necessary and appropriate action, including the engagement of outside counsel" to protect the college's interests.
Former City Councilman David Loeb criticized the $350 million in real estate transactions, arguing that tax incentives "are designed to help nonprofits and governments actually build housing for very low-income people" rather than exempt "fancy apartment complexes on Ocean Drive" from paying taxes.
